Shares in RCS up strongly after book unit bid confirmed

MILAN: Shares in RCS Media group rose as much as 6 percent on Thursday after news the Italian publisher had received a non binding offer for its book unit from Mondadori.

The two companies issued separate statements on Wednesday at the behest of market regulator Consob after sources told Reuters Mondadori was in advanced talks to buy RCS Libri in a deal that could be worth between 120 million and 150 million euros.

“High debt and difficulties in generating sustanaible profitability from books could push RCS to agree to the sale,” broker ICBPI said in a note.

By 0815 GMT shares in RCS were up 4.4 percent against a flat all-share Milan stock index. Shares in Mondadori rose 0.9 percent.